AmRest Holdings SE 2012 Presentation for Investors March 19th 2013 - - PowerPoint PPT Presentation

AmRest Holdings SE

2012 Presentation for Investors March 19th 2013

Teleconference Details

• AmRest FY 2012 results are included in the FY 2012 Financial Report which is

available to download from Investor Relations section at: http://www.amrest.eu

• The recording of this Teleconference will be available at our website within 24 hours

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The AmRest participants: Henry McGovern Chairman of the Supervisory Board Mark Chandler Management Board Member, Chief Financial Officer Wojciech Mroczyński Management Board Member, Chief Strategy Officer Krzysztof Piechna Group Controller Maciej Mausch IR, M&A Manager

Executive Summary 2012

Strong financial results

• 20/20+ Growth Agenda on track -> Sales & EBITDA up by 23% and 46%,

respectively

• Challenging economic environment now improving
• SSS trends continue: Booming Russia, flat CEE and weakening Spain
• Core margins impacted by significant one-off gains and value offer

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Executive Summary 2012

Building international reach

• 4 new test markets for La Tagliatella have opened
• Unique Growth Opportunity in China – acquisition of Blue Horizon

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Our Restaurants

5

* *

New Restaurant Openings

• 84 stores opened in 2012 (43 CEE, 15 REM, 26 TAG)

– First openings in China, Germany and US – First equity store in France

• 14 openings 2013 YTD (4 CEE, 1 REM, 9 TAG)

– First opening in India – Additional openings in China, Germany, US

• Solid pipeline for the rest of 2013 with ca. +100 stores to be opened;

– 30 TAGs and 15 new stores in Russia

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Continued growth in the number of restaurants

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• Countries of operation include Poland, the Czech Republic, Hungary, Russia, Serbia, Bulgaria, Spain, Croatia, France, Germany, China and USA
• Data doesn’t include Applebee’s restaurants sold in 2012 to Apple American Group II, LLC
• [1] Including franchisee operated stores

64 77 79 77 70 71 69 70 8 13 24 39 53 4 12 21 27 35 37 127 166 202 223 239 310 348 349 122 145 152

2006 2007 2008 2009 2010 2011 2012 2013-03-19 672

11 11 35 54

[+23%] 360 334 301 247 191 577 663

# of Restaurants

&

[1] 1 Stubb’s

Financial Highlights – FY 2012

20/20+ Growth Agenda on track – solid growth in both sales and EBITDA

• Consolidated sales growth 23% with revenues increasing across the

markets:

• CEE: 11% rise in FY revenues; 4% in Q4; FY SSS flat
• Russia: 45% growth in FY results; 36% in Q4 due to booming FY SSS and

increased pace of openings

• Western Europe: 55% rise in FY results; 3% drop in Q4 due to negative SSS
• EBITDA at PLN 366 mil, up by 46%; 15.6% EBITDA margin
• Excluding one-off gain on Applebee’s sales consolidated EBITDA is up by over

19%

• Adjusted for one-offs and start-up costs margins stable in all divisions
• VAT adjustment impact of PLN 12 mil in 2012, PLN 5 mil in 2011

8

2012 Financials by Segments (PLN ’000)

9

1 357 1 502 218 315 347 537 6 7 8 5 2 +10.6% +44.7%

CEE Russia Western Europe and EM

11.2% 11.9% 13.6% 10.8% 21.6% 16.9%

EBITDA Margin

2011 2012

+54.7%

2011 2012 2011 2012

Sales

Financial Highlights – FY 2012 Balance sheet significantly improved

• Finalization of the US transaction
• EBITDA impacted by PLN 68 mil in Q4
• Other one-off charges
• Put option PLN 8.6 mil; impairment PLN 21.3 mil
• Net profit at record high PLN 98 mil
• Fortified balance sheet
• net debt to EBITDA below 2; less than PLN 600 mil net debt

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2012 Financials – Key Figures

11

Thousand PLN Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 TTM [2] Sales 533 607 602 146 544 891 567 875 602 735 637 852 2 353 353 Sales growth [1] 19.5% 12.8%

• 9.5%

4.2% 13.0% 5.9%

• EBITDA

80 036 77 843 70 140 70 626 83 584 141 697 366 047 EBITDA (%) 15.0% 12.9% 12.9% 12.4% 13.9% 22.2% EBIT 42 227 14 390 28 427 24 977 40 099 82 160 175 663 EBIT (%) 7.9% 2.4% 5.2% 4.4% 6.7% 12.9% 7.5% Profit for the period [3] 28 475 19 654 14 903 9 676 27 718 47 202 99 499 Profit for the period% 5.3% 3.3% 2.7% 1.7% 4.6% 7.4% 4.2% Net debt 783 252 776 623 773 057 806 177 756 299 596 654 596 654 Net debt/EBITDA 2.6 2.4 2.3 2.4 2.2 2.0 2.0

[1] The growth vs. corresponding period in the previous year ,[2] trailing 12 months, [3] Attributable to AmRest shareholders and adjusted for the Put Option valuation Seasonality of sales: The seasonality of sales and inventories of the AmRest Group is not significant which is typical for the whole restaurant industry. On Central and East European markets. restaurants have lower sales in the first half of the year which is mainly the result of a smaller number of days of sale in February and lower number of customers in the

• restaurants. The United States market is characterized by stronger first half versus second half sales performance. After a period of lower sales in the summer months and a

slight revival related to the Christmas season, the first half of the year is a period of increased activity in connection with the use of holiday vouchers promotional coupons and a high number of holidays.

Outlook

• Economic uncertainty with some hope
• Value and innovation
• La Tagliatella global development – validation of concept and an

investment opportunity

• Growth will prevail

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IR contact:

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Maciej Mausch

maciej.mausch@amrest.eu mobile +48 519 19 12 64

• tel. +48 71 386 12 64

Backup slides

AmRest Strategy

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Leverage our WJM culture, international capability, and superior brand portfolio to grow scalable, highly profitable restaurants globally. Through our WJM culture we will deliver delicious taste and exceptional service at affordable prices.

Scope Our unique value proposition

Deliver 20/20+ Growth

EXPAND OUR CORE

CE Russia Spain

DEVELOP NEW GROWTH DRIVERS

La Tagliatella International

M&A

Achieve full market penetration Extend reach in dayparts & formats Establish BK and Starbucks Leverage central kitchen concept Reduce build cost Raise margins Performance Drivers Launch La Tagliatella globally Build factory and support infrastrcuture Develop franchise network Acquire KFC globally Optimize and expand portfolio with strategic brands & markets

AmRest Growth Agenda

Brand Portfolio

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#1 in Chicken 16,000 restaurants in over 100 countries #1 and the fastest growing QSR brand in the Emerging Markets Over 700 restaurants added in 2010 #1 CDR in the World Over 13,000 restaurants in over 100 countries #1 Coffee in the World 17 000 stores in over 50 countries #2 in #1 QSR category in the World

• Burgers. Over 12,000 restaurants in 73 countries

Unique proven restaurant concept, unmatched business model, over 150 restaurants in 6 countries. Established, highly profitable, western concepts present in major Chinese cities. STUBB’S Bar-B-Q is an institution in Texas, the authentic cowboy cooking, western concept present in Shanghai

Long Runway For Growth

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KFCs per 1M people

Early Stage; significant growth opportunities still being evaluated Spain: Potential to reach 200 stores International: Early stage; significant growth opportunity still being evaluated

Note: Number of KFC restaurants shown for REM is total country. AmRest operates 55 of these. Store count as of Q1 2012; macro data from EIU 2011.

Population (m) Nominal GDP per Capita ($) # of KFC Stores Australia 23 65,908 610 Canada 34 50,596 700 US 312 48,409 4,750 UK 63 38,739 752 Total DM Benchmarks 431 48,091 6,812 Poland 38 13,450 165 Czech 11 20,416 61 Hungary 10 13,986 25 Total CEE 59 14,792 251 Russia 143 12,991 165 Bulgaria 7 7,284 16 Serbia 7 6,086 4 Slovenia 2 24,183 – Croatia 4 14,197 3 Total REM 164 12,601 188 27,1 20,4 15,2 12,0 15,8 4,0 5,3 2,1 3,9 1,2 2,2 0,6 0,0 0,2 1,1

Long-term potential for doubling the current number of KFCs in CEE and REM markets

CEE and REM Snapshot [1]

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EOP Restaurants Poland Market Split

Macro Statistics LTM AmRest Sales Population GDP / capita ($) PLN y/y growth SSS Growth Poland 38 13,450 997,608 18.9% Czech 11 20,416 337,593 11.5% Hungary 10 13,986 91,180 34.2% Total CEE 59 14,792 1,426,381 17.9% ~ +3-5 % REM 164 12,601 266,357 44.4% ~ +20%

182 195 227 250 251 63 59 60 59 60 13 39 53 54 19 24 32 34 2009 2010 2011 2012 19-Mar-13

399

24

397 358 302 277

165 304 27 33 110

+56 +39 +25

41 44 51 66 67 14 11 11 10 10 2 3 3 2 1 2009 2010 2011 2012 19-Mar-12

78

35

+7 +13 +1 78 65 58 57

CEE REM

Market Overview

Note: Costa Coffee includes Coffee Heaven Note: Macro data from EIU 2011.

[1] As of March 2013

26 30 32 32 31

2009 2010 2011 2012 2013-03-19

Spain / Tagliatella Snapshot

20

International Spain

20 27 35 47 48 65 73 85 89 91 2009 2010 2011 2012 2013-19-03

+20 136 120 100 85 +16 +15

Equity Franchise

Significant international opportunity... Currently 1 equity and 4 franchise stores in France 1 equity store in India, 2 equity stores in the US and China, 3 in Germany

Guidance next 3 years

3/19/2013 21

Sales growth

• Organic growth 20% CAGR
• Potential M&A activity

EBITDA

• 15% margin

CAPEX

• Average capex per store below PLN 3 million
• 80 restaurants p.a + PLN 50 million maintenance capex

NET Debt

• Bank covenants at 3.5x EBITDA
• Target of 2.5-3.0x EBITDA

EAT Factsheet

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Ticker EAT (AmRest) Listing WSE Free Float 27.04% Analyst Coverage Unicredit, Wood&Co, Trigon, Raiffeisen Centrobank AG, KBC Securities, IPOPEMA, ERSTE, DM PKO BP, DM Banku BPS Number of Employees 16,300 Number of Shares 21.2 million Number of Restaurants 672

[1] Including 95 restaurants operated by franchisees

2012 – Segment reporting

23 [1] Profit at EBITDA level plus one-off costs of new openings

2012 2011 % of sales margin % % of sales margin % Sales 2 353 353 22.5% 1 921 779 Poland 1 040 123 44.2% 925 049 48.1% Czech Republic 333 552 14.2% 328 389 17.1% Other CEE 127 933 5.4% 103 757 5.4% Total CEE 1 501 608 63.8% 1 357 195 70.6% Russia 315 143 13.4% 217 780 11.3% Western Europe 536 602 22.8% 346 804 18.0% USA 0.0% 0.0% Unallocated 0.0% 0.0% EBITDA 366 047 15.6% 251 470 13.1%

• Adj. EBITDA [1]

393 039 16.7% 273 542 14.2% Poland 131 615 12.7% 103 771 11.2% Czech Republic 40 652 12.2% 47 238 14.4% Other CEE 5 679 4.4% 1 349 1.3% Total CEE 177 946 11.9% 152 358 11.2% Russia 33 897 10.8% 29 556 13.6% Western Europe 90 765 16.9% 74 873 21.6% USA 68 124

• Unallocated
• 4 685
• 5 317
• EBIT

175 663 7.5% 90 778 4.7% Poland 47 752 4.6% 35 879 3.9% Total CEE 51 267 3.4% 43 605 3.2% Russia 13 930 4.4% 12 079 5.5% Western Europe 47 027 8.8% 40 425 11.7% USA 68 124

• Unallocated
• 4 685
• 5 331

Q4 2012 – Segment reporting

24 [1] Profit at EBITDA level plus one-off costs of new openings

2012 2011 % of sales margin % % of sales margin % Sales 637 852 5.9% 602 146 Poland 279 119 43.8% 261 742 43.5% Czech Republic 91 200 14.3% 96 920 16.1% Other CEE 38 252 6.0% 33 615 5.6% Total CEE 408 571 64.1% 392 277 65.1% Russia 87 921 13.8% 64 821 10.8% Western Europe & New Markets 141 360 22.2% 145 048 24.1% EBITDA 141 697 22.2% 77 843 12.9%

• Adj. EBITDA [1]

151 566 23.8% 85 091 14.1% Poland 41 917 15.0% 19 292 7.4% Czech Republic 8 560 9.4% 20 055 20.7% Other CEE 2 364 6.2% 1 324 3.9% Total CEE 52 841 12.9% 40 671 10.4% Russia 5 543 6.3% 8 746 13.5% Western Europe & New Markets 17 895 12.7% 28 973 20.0% USA 68 124

• Unallocated
• 2 706
• 547
• EBIT

82 160 12.9% 14 390 2.4% Poland 13 728 4.9%

• 4 634
• 1.8%

Czech Republic 1 654 1.8% 9 771 10.1% Other CEE

• 3 334
• 8.7%
• 309
• 0.9%

Total CEE 12 048 2.9% 4 828 1.2% Russia 620 0.7% 44 0.1% Western Europe & New La Tagliatella Markets 4 074 2.9% 10 079 6.9% Unallocated

• 2 706
• 561

2012 – Consolidated P&L

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Thousand PLN 2012 % of sales 2011 % of sales Restaurant sales 2 195 838 1 808 547 Franchise and other sales 157 515 113 232 Total sales 2 353 353 1 921 779 Company operated restaurant expenses: Food and material

• 705 735
• 30.0%
• 571 090
• 29.7%

Payroll and employee benefits

• 467 761
• 19.9%
• 367 914
• 19.1%

Royalties

• 118 721
• 5.0%
• 100 911
• 5.3%

Occupancy and other operating expenses

• 685 568
• 29.1%
• 551 718
• 28.7%

Franchise and other expenses

• 114 445
• 4.9%
• 100 388
• 5.2%

General and administrative (G&A) expenses

• 157 843
• 6.7%
• 140 929
• 7.3%

Profit on the sale of fixed assets USA 67 621 2.9%

• Impairment losses
• 21 305
• 0.9%
• 15 015
• 0.8%

Other income 26 067 1.1% 16 964 0.9% Profit/(loss) from operations 175 663 7.5% 90 778 4.7% EBITDA 366 047 15.6% 251 470 13.1% Finance costs

• 57 571
• 2.4%
• 43 056
• 2.24%

Cost from put option valuation

• 8 572
• 0.4%
• 15 507
• 0.81%

Finance income 4 203 0.2% 11 262 0.6% Income/(loss) from associates 39 0.0% 72 0.0% Income tax expense

• 26 753
• 1.1%

7 181 0.4% Profit for the period from continuing operations 87 009 3.7% 50 730 2.6% Loss on discontinued operations 10 884 0.5% 11 898 0.6% Profit for the period 97 893 4.2% 62 628 3.3% Attributable to: Non controlling interest 6 966 0.3% 7 959 0.4% Equity holders of the parent 90 927 3.9% 54 669 2.8%

Q4 2012 – Consolidated P&L

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Thousand PLN Q4 2012 % of sales Q4 2011 % of sales Restaurant sales 597 012 559 552 Franchise and other sales 40 840 42 594 Total sales 637 852 602 146 Company operated restaurant expenses: Food and material

• 191 650
• 30.0%
• 174 465
• 29.0%

Payroll and employee benefits

• 123 254
• 19.3%
• 109 295
• 18.2%

Royalties

• 32 147
• 5.0%
• 29 357
• 4.9%

Occupancy and other operating expenses

• 191 014
• 29.9%
• 173 366
• 28.8%

Franchise and other expenses

• 30 631
• 4.8%
• 39 499
• 6.6%

General and administrative (G&A) expenses

• 48 615
• 7.6%
• 58 251
• 9.7%

Profit on the sale of fixed assets USA 67 621 10.6%

• Impairment losses
• 17 014
• 2.7%
• 13 134
• 2.2%

Other income 11 012 1.7% 9 611 1.6% Profit/(loss) from operations 82 160 12.9% 14 390 2.4% EBITDA 141 697 22.2% 77 843 12.9% Finance costs

• 13 360
• 2.1%
• 18 709
• 3.1%

Cost from put option valuation 802 0.1%

• Finance income

1 457 0.2%

• 1 718
• 0.3%

Income/(loss) from associates 22 0.0%

• 9

0.0% Income tax expense

• 18 252
• 2.9%

19 958 3.3% Profit for the period from continuing operations 52 829 8.3% 13 912 2.3% Loss on discontinued operations

• 3 595
• 0.6%

3 182 0.5% Profit for the period 49 234 7.7% 17 094 2.8% Attributable to: Non controlling interest 1 230 0.2% 3 403 0.6% Equity holders of the parent 48 004 7.5% 13 691 2.3%

AmRest Portfolio

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Countries Brands 2006-12-31 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-03-19 Poland 131 139 158 188 206 256 280 283 KFC 79 85 94 110 121 150 163 165 BK 4 9 17 19 27 28 27 SBX 3 9 21 32 33 PH 52 50 55 58 57 58 57 58 Czech 43 44 62 67 75 73 83 82 KFC 43 44 53 55 58 56 62 61 BK 1 2 5 5 7 7 SBX 8 10 12 12 14 14 Hungary 17 22 22 22 21 29 34 34 KFC 5 13 15 17 16 21 25 25 SBX 3 6 7 7 PH 12 9 7 5 2 2 2 2 Russia 40 54 51 50 55 66 66 KFC 22 37 37 39 44 56 56 PH 18 17 14 11 11 10 10 Bulgaria 1 4 4 5 5 6 5 KFC 1 2 2 2 2 4 4 BK 2 2 3 3 2 1 Serbia 1 1 2 3 4 4 4 KFC 1 1 2 3 4 4 4 Croatia 1 2 3 KFC 1 2 3 Spain 152 168 170 TAGE 35 47 48 TAGF 85 89 91 KFC 32 32 31 France 2 5 5 TAGE 1 1 TAGF 2 4 4 Germany 2 3 TAGE 2 3 China 12 14 Blue Frog 10 10 Kabb 1 1 Stubb's 1 TAGE 1 2 USA 1 2 TAGE 1 2 India 1 TAGE 1 Total Amrest 191 246 301 334 360 577 663 672